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AFG - Aquatic Foods News Story

12.5p 0.0  0.0%

Last Trade - 28/06/17

Sector
Consumer Defensives
Size
Micro Cap
Market Cap £n/a
Enterprise Value £n/a
Revenue £106.1m
Position in Universe th / 1820

Aquatic Foods Group - Correction to Final Results Announcement - Part 2

Thu 30th June, 2016 7:45am
- Part 2: For the preceding part double click  ID:nRSd7536Ca 

at 1 January 2015        25,804                 675                 48                    12,792                 741               40,060   
 Additions                   28                     -                   -                     9,048                  129               9,205    
 Disposals                   -                      -                   -                     -                      (142)             (142)    
 At 31 December 2015         25,832                 675                 48                    21,840                 728               49,123   
                                                                                                                                                
 Accumulated depreciation                                                                                                                       
 As at 1 January 2014        8,839                  475                 28                    5,960                  329               15,631   
 Charge for the year         1,169                  57                  6                     879                    103               2,214    
 Disposals                   -                      (24)                -                     (43)                   (32)              (99)     
 As at 1 January 2015        10,008                 508                 34                    6,796                  400               17,746   
 Charge for the year         1,173                  45                  4                     857                    105               2,184    
 Disposals                   -                      -                   -                     -                      (128)             (128)    
 At 31 December 2015         11,181                 553                 38                    7,653                  377               19,802   
                                                                                                                                                
 Net carrying amount                                                                                                                            
 As at 31 December 2015      14,651                 122                 10                    14,187                 351               29,321   
 As at 31 December 2014      15,796                 167                 14                    5,996                  341               22,314   
                                                                                                                                                
 
 
(a)       All property, plant and equipment held by the Group are located in
the PRC. 
 
(b)        The following property, plant and equipment have been pledged to
licensed banks as security for banking facilities granted to the Group as
disclosed in Note 20 to the financial information:- 
 
                                  
                         2015       2014       
                         RMB'000    RMB'000    
                                               
 At carrying amount:-                          
 Leasehold buildings     13,377     14,423     
                                               
                                               
 
 
10.          Land Use Rights 
 
                                              
                                     2015            2014       
                                     RMB'000         RMB'000    
 At cost:-                                                    
 At 1 January/At 31 December  2,228           2,228           
                                                                      
 
 
 Accumulated amortisation:-                
 At 1 January                308    264    
 Amortisation charge         44     44     
 At 31 December              352    308    
 
 
 Carrying amounts:-                         
 Amortisation due:                          
 - not later than one year  44       44     
 - later than one year      1,832    1,876  
 At 31 December             1,876    1,920  
                                            
 
 
             m2        m2        
                                 
 Land areas  20,416    20,416    
 
 
The carrying amounts of the land use rights that have been pledged to licensed
banks as security for banking facilities granted to the Group as disclosed in
Note 15 to the financial information are as follows: 
 
                                   
                             2015           2014    
                    RMB'000        RMB'000        
                                                  
 Land use rights    1,876          1,920          
                                                  
                                                          
 
 
Amortisation is provided to write off the cost of the land use rights over the
leasehold periods of 50 years. 
 
11.          Inventories 
 
                                  
                            2015           2014    
                   RMB'000        RMB'000        
                                                 
 At cost:-                                       
 Raw materials     29,610         27,599         
 Finished goods    26,017         19,911         
                                                 
                   55,627         47,510         
                                                 
                                                           
 
 
 Recognised in profit or loss                                     
 Inventories recognised as cost of sales    647,772    543,877    
                                                                    
                                                                      
 
 
12.          Other Receivables, Deposit And Prepayment 
 
                                   2015           2014      
                          RMB'000        RMB'000        
                                                        
 Other receivables        48             50             
 Advances to suppliers    -              1,909          
 Prepayments              4,572          912            
                                                        
                          4,620          2,871          
                                                        
                                                        
                                                                
 
 
13.          Cash And Bank Balances 
 
                                                   
                                          2015       2014       
                                          RMB'000    RMB'000      
                                                                  
   Cash in hand                           11         119          
   Cash at banks                          380,408    193,784      
                                                                  
   Cash and bank balances                 380,419    193,903      
   Less: Bank balances restricted in use  (4,432)    (6,327)      
   Cash and cash equivalents              375,987    187,576      
   Effective interest rate (per annum)    0.35%      0.39%        
                                                                  
                                                                        
 
 
The Chinese Renminbi is not freely convertible into foreign currencies.  Under
the PRC Foreign Exchange Regulations and Administration of Settlement, Sales
and Payment of Foreign Exchange Regulations, the Group is permitted to
exchange Chinese Renminbi for foreign currencies through banks that are
authorised to conduct foreign exchange business. 
 
14.          Other Payables And Accruals 
 
                                                
                                        2015             2014      
                               RMB'000          RMB'000            
                                                                   
 Other payable                 8,125            12,912             
 Accrued salary                7,257            6,544              
 Accruals                      20,433           24,928             
 Amount owing to a director    32               9                  
                                                                     
                                        35,847           44,393      
                                                                     
                                                                             
 
 
The amount owing to a director is unsecured, interest-free and repayable on
demand. 
 
15.          Stated Capital 
 
   2015                                                                                       
   Number of shares                                                                  RMB'000             
   Issued:                                                                                               
   On incorporation as at 11 August 2014                                2                     -          
   Issued in pursuant to the Framework Agreement as at 23 October 2014  49,999,998                       
   Subdivision of existing shares as at 28 January 2015                 50,000,000            -          
   Placing Shares and Subscriber Shares as at 3 February 2015           13,226,081            87,167     
   Less: Issuance costs                                                 -                     (1,929)    
                                                                                                         
                                                                                                         
   At the end of the year                                               113,226,081           85,238     
                                                                                                         
                                                                                                                 
 
 
On incorporation, the Company issued two ordinary shares at no par value with
an unlimited share capital. 
 
On 23 October 2014, the company allotted and issued 49,999,998 Ordinary Shares
of no par value pursuant to the Framework Agreement. 
 
On 28 January 2015, the company had been subdivided its existing 50,000,000
ordinary shares into 100,000,000 of ordinary shares. On 3 February 2015, the
company's shares had been admitted to trading on the AIM market of the London
Stock Exchange. The Company had further issued 5,792,081 Placing Shares and
7,434,000 Subscriber Shares. The total issued ordinary shares of the company
were 113,226,081. 
 
16.          Reserves 
 
                                   2015    2014       
                                   Note    RMB'000    RMB'000    
                                                                 
 Capital reserve                   (a)     31         31         
 Statutory reserves                (b)     14,717     11,193     
 Merger reserves                   (c)     7,394      7,394      
 Translation reserve                       649        546        
 Distributable retained profits            451,482    322,329    
                                                                 
                                           474,273    341,493    
                                                                 
                                                                   
 
 
(a)   Capital Reserve 
 
Capital reserve is premium received on the issue of share capital. 
 
(b)   Statutory Reserve 
 
According to the relevant PRC regulations and the Articles of Association of
the subsidiaries, it is required to transfer 10% of each subsidiary's
respective profit after income tax to its statutory surplus reserve until its
reserve balance reaches 50% of its registered capital.  The transfer to this
reserve must be made before the distribution of dividends to equity owners. 
Statutory surplus reserve can be used to make good previous years' losses, if
any, and be converted into paid-in capital in proportion to the existing
interests of equity owners, provided that the balance after such conversion is
not less than 25% of the registered capital. 
 
(c)    Merger Reserve 
 
The accounting treatment for Group reorganisations is scoped out of IFRS 3.
Accordingly, as required under IAS 8 - Accounting Policies, Changes in
Accounting Estimates and Errors the Group has referred to current UK GAAP to
assist its judgement in identifying a suitable accounting policy.  The
introduction of the new holding company has been accounted for as a capital
reorganisation using the merger accounting principles prescribed under current
UK GAAP.  Therefore the consolidated financial statement of Aquatic Foods
Group PLC is presented as if Aquatic Foods Group PLC has always been the
holding company for the Group. 
 
The use of merger accounting principles has resulted in a balance on Group
capital and reserves that have been classified as a merger reserve and
included in the Group's shareholders' funds.  The consolidated financial
statements include the results of the Company and all its subsidiary
undertakings made up to the same accounting date. 
 
17.          BorroWINGS 
 
                                                              2015           2014    
                                                     RMB'000        RMB'000          
 Trade finance                                       14,040         13,470           
 Interest-bearing bank borrowings - secured          28,000         28,000           
 Total amount reclassified as current liabilities    42,040         41,470           
                                                                                       
                                                                                           
 
 
Trade finance was secured by cross guarantees of the subsidiaries between
Yantai Kanwa and Yantai Zhenhaitang. 
 
Interest-bearing bank borrowings were secured by: 
 
(a)   land use rights of the Group (Note 10) 
 
(b)   property of the Group (Note 9) 
 
(c)   personal guarantees by a director of the Group 
 
Interest-bearing bank borrowings bear effective interest rates of 6.33% (2014:
5.75%) per annum is repayable within one year. 
 
18.          Related Party Disclosure 
 
(a)       Identities of related parties 
 
The company has related party relationships with its subsidiaries as disclosed
in note 1, its directors, key management personnel and entities of which the
director and/or by management have significant financial interests. 
 
(b)       Other than those disclosed elsewhere in the financial information,
the Group also carried out the following significant transactions with the
related parties as disclosed below:- 
 
                                              2015       2014       
                                              RMB'000    RMB'000    
 Director's remuneration:                                           
 - short-term employee benefits               3,124      666        
 - defined contribution plans                 8          8          
                                                                    
                                              3,132      674        
                                                                    
                                                                    
 Other key management personnel:                                    
 - short-term employee benefits               1,310      1,636      
 - defined contribution plans                 27         35         
                                                                    
                                              1,337      1,671      
                                                                    
                                                                    
 Total key management personnel remuneration  4,469      2,345      
 
 
19.          WARRANT ISSUED 
 
On 28 January 2015, the company granted 50,000 warrants to S.P. Angel
Corporate Finance LLP, the company's nominated adviser, at the exercise price
of 70 pence each with expiring date of 5 years. The directors have used Black
Scholes model as recommended under IFRS 2 in valuing the share based payment
charge. The fair value of the services received in consideration for the issue
of the warrants was measured at the date of grant was approximately RMB
48,000. A charge of RMB 48,000 has been recognised in equity for the year
within stated capital with an equivalent increase in stated capital. 
 
20.          Subsequent events 
 
There were no material events subsequent to the end of the financial year
under review that have not been reflected in this report as at the date of
this report. 
 
- ENDS - 
 
This information is provided by RNS
The company news service from the London Stock Exchange
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